Correlation Between Hanesbrands and SFI INVESTIMENTOS
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and SFI INVESTIMENTOS at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Hanesbrands and SFI INVESTIMENTOS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and SFI INVESTIMENTOS DO, you can compare the effects of market volatilities on Hanesbrands and SFI INVESTIMENTOS and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Hanesbrands with a short position of SFI INVESTIMENTOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and SFI INVESTIMENTOS.
Diversification Opportunities for Hanesbrands and SFI INVESTIMENTOS
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hanesbrands and SFI is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and SFI INVESTIMENTOS DO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SFI INVESTIMENTOS and Hanesbrands is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Hanesbrands are associated (or correlated) with SFI INVESTIMENTOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SFI INVESTIMENTOS has no effect on the direction of Hanesbrands i.e., Hanesbrands and SFI INVESTIMENTOS go up and down completely randomly.
Pair Corralation between Hanesbrands and SFI INVESTIMENTOS
Considering the 90-day investment horizon Hanesbrands is expected to generate 1.96 times more return on investment than SFI INVESTIMENTOS. However, Hanesbrands is 1.96 times more volatile than SFI INVESTIMENTOS DO. It trades about 0.26 of its potential returns per unit of risk. SFI INVESTIMENTOS DO is currently generating about -0.05 per unit of risk. If you would invest 712.00 in Hanesbrands on September 4, 2024 and sell it today you would earn a total of 179.00 from holding Hanesbrands or generate 25.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Hanesbrands vs. SFI INVESTIMENTOS DO
Performance |
| Timeline |
| Hanesbrands |
| SFI INVESTIMENTOS |
Hanesbrands and SFI INVESTIMENTOS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and SFI INVESTIMENTOS
The main advantage of trading using opposite Hanesbrands and SFI INVESTIMENTOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, SFI INVESTIMENTOS can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SFI INVESTIMENTOS will offset losses from the drop in SFI INVESTIMENTOS's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| SFI INVESTIMENTOS vs. Energisa SA | SFI INVESTIMENTOS vs. BTG Pactual Logstica | SFI INVESTIMENTOS vs. Plano Plano Desenvolvimento | SFI INVESTIMENTOS vs. Companhia Habitasul de |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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